Apergy Corporation (NYSE:APY) Q1 2019 Earnings Conference Call - Final Transcript

May 01, 2019 • 10:00 am ET


Apergy Corporation (NYSE:APY) Q1 2019 Earnings Conference Call - Final Transcript


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Hello and welcome to the Apergy First Quarter 2019 Earnings Call. My name is Michelle and I will be your operator for today's conference. (Operator Instructions) Please note that this conference call is being recorded.

I will now turn the call over to Mr. David Skipper. Sir, you may begin.

David Skipper

Thank you. Good morning, everyone. With me today are Soma Somasundaram, President and CEO of Apergy; and Jay Nutt, Senior Vice President and CFO of Apergy. During today's call Soma will discuss Apergy's first quarter highlights and market outlook, Jay will then discuss our first quarter results and will be referring to the slides posted on our website before turning the call back to Soma to discuss the progress on our growth initiatives, and then we will open the call for Q&A.

I would like to remind our participants that some of the statements we will be making today are forward-looking. These matters involve risks and uncertainties that could cause material differences in our results from those projected in these statements. Information concerning the risk factors that could affect the Company's performance and uncertainties that could cause material differences to actual results from those in the forward-looking statements can be found in the Company's press release, as well as in Apergy's Annual Report on Form 10-K and those set forth from time to time in Apergy's filings with the Securities and Exchange Commission, which are currently available at apergy.com. Except as required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statements. Our comments today may also include non-GAAP financial measures. Additional details on reconciliations to the most directly comparable GAAP financial measures can be found in our first quarter press release and slide presentation for this call, which are on our website.

I will now turn the call over to Soma to discuss Apergy's first quarter results.

Sivasankaran Somasundaram

Thank you, David. Good morning, everyone. I would like to welcome our shareholders, our analysts and our employees to our first quarter 2019 earnings call. Thanks for joining the call. We executed well in the first quarter and delivered solid financial results. During the quarter, market activity progressed as we expected with a seasonally slower start in January followed by progressively improving activity for the remainder of the quarter. We believe that our demonstrated strong execution, as well as continued progress on our growth initiatives continues to result in a differentiated performance in the oilfield equipment and technology space.

Turning now to our financial results for the first quarter. Revenues increased by $19 million or 7% year-over-year. Our revenue growth was driven by solid results in both of our operating segments. Consolidated adjusted EBITDA increased by 14% year-over-year, reflecting strong execution and operating performance in both of our segments. Consolidated adjusted EBITDA margin increased by 150 basis points to 24% from 22.5% in the first quarter of 2018 as we continue to demonstrate good cost discipline. Compared to the first quarter of 2018, we did incur